Why Buying Used Machines is AWESOME

Myth: BUSTED

The myth that businesses buying used or secondhand simply "don't have the money" to buy new is prevalent in the sector. In reality, they are making a wise financial decision to purchase used equipment can result in a significant return on investment (ROI).

Purchasing old heavy machinery might be an excellent approach to getting the fleet you need at a cost that works for your company. While looking for bargains can be entertaining, a seasoned buyer of used equipment is aware of the numerous traps that are simple to fall into and understands the value of adopting a planned approach when making a purchase.

The Pros of Buying Used Machines

• It will cost you less.
• Owners frequently have the ability to negotiate preferred terms and special volume discounts on these new machine purchases, but incentives may be restricted for small to medium-sized fleet owners. Used equipment with low usage hours is just as capable as new equipment and may be purchased for a much lower cost. This makes sense because purchasing new machinery from your neighborhood dealer ensures that you will receive a machine in pristine shape that was just removed from the factory floor while also paying top price.
• Availability.
• When you purchase new equipment, you are subjected to lengthy lead times from the factory, upon receiving the unit at your job site. Additionally, if delays occur, you might need to act quickly to get a rental machine onto the job site until your new asset is prepared for delivery.
• It won’t depreciate yet.
• Throughout the course of the asset's life, the depreciation curve flattens out. You can purchase a machine that will lose value much more slowly by purchasing a used one.
• Keeps a longer resale value. 
• Used equipment can demand a resale value that is only marginally less than the amount paid for it because it is typically purchased on the flatter part of the depreciation curve as long as it is properly maintained. Of course, the state of the market is equally important.

Now with those being said, what’s the catch? Of course, there are still some cons in purchasing equipment hence let’s move to the:

The Cons

• Older technology and maintenance concerns.
• Despite being old and the technology outdated, the machine would have issues that need to be immediately resolved. Any flaw of that previous technology would also be an issue. Being strategic in this situation is crucial, as is understanding what work needs to be done right away and what work can be safely put off until later.
• Your selection and machine history are limited.
• By selection, it means “what you see is what you get”. You need to compromise on certain features and this may be more challenging if you are looking for highly-specialized equipment. Its entire history about its use may also be limited that’s why it is wise to get an outside or third-party technician to inspect the unit.

So, How Do I Purchase One Then? Here are 5 Easy Steps

1. Identify your needs and your available budget.
1. You need to know what you will be needing it for. Do you plan to purchase for a specific project? If so, consider the conditions at the workplace. To avoid operator fatigue in a hot climate, you should probably check if the A/C is operating. If it's in a chilly climate, an enclosed cab is probably preferable to an open one. You might need a tracked machine rather than a wheeled machine, depending on the terrain. Consider the possibility of any seasonal weather dangers appearing as well.
2. There are often machines available for every price range due to the size of the used equipment market. Just keep in mind that the purchase price does not include all of your ownership expenses. Consider how long you intend to keep the machine and its potential resale value, the price of fuel, and upkeep as well.
2. Do your research on sellers.
1. You can find all types of used equipment sellers on and offline, but they are not all the same. 
2. Offline Sellers could be:
1. Equipment Dealers
2. Auctions
3. Online Sellers are also plentiful, with websites like IronPlanet in the United States, and even Facebook Marketplace and Carousell. 
3. Identify key information.
1. Here are some questions you might need to ask the seller:
1. Is the price right?
2. Is it readily available?
3. Can you get the machine records and history?
4. Where was the machine used and who used it?
5. What will be the payment terms?
4. Inspect the unit with a 3rd Party Mechanic or Technician.
1. The most crucial step in purchasing a used piece of heavy machinery is doing a thorough inspection so you can be sure you know what condition the equipment is in. Note that the objective of this step is to ensure that you are aware of any potential problems rather than to find a machine that is 100% free from flaws or defects.
5. Close the deal.
1. Once you are satisfied with the results proceed with the purchase, but make sure you got all the details to straighten out.
1. 3rd Party Inspection Report
2. The Payment Terms and your Funding Solutions
3. The Logistics and Delivery of the Unit

And that brings a close to this article, we hope we’ve helped you through your journey in venturing into the purchase of used machines! Here at QuippUsed, we offer heavy equipment and trucks from our trusted sellers! Go check out our listings.